The Purpose in the publication of this paper is to keenly find out the defects in the fabrics. Mainly the system should be implemented in the production and manufacturing companies, where the actual handling of the clothes and fabrics is done. Classification of the fabrics with defects is an important task and that to with the help of the system because the human labor though very keen can because the errors up to one percent that remains unattended or unseen by the human vision. Hence the need in development of the system arises that will certainly overcome the errors caused by the laborers. Therefore coming forward and constructing such system by taking the help of image processing techniques that includes the serial wise creating the threshold value.